Samsung Electronics on Tuesday projected a far worse than expected 56% plunge in second-quarter operating profit due to weak AI chip sales, deepening investor concerns over the tech giant's ability to revive its struggling semiconductor business.

A draft rule from the Commerce Department seeks to prevent China — to which the U.S. has effectively banned sales of Nvidia’s advanced AI processors — from obtaining those components through intermediaries.

China export restrictions affect foundry business while Nvidia has yet to approve tech giant’s advanced products